Shin-Etsu Chemical again deeply apologizes for the great trouble and anxieties caused to the people concerned as a result of the explosion and subsequent fire that occurred at its Naoetsu Cellulosic Plant on March 20, 2007.

Today we are issuing an update on the situation as of April 10.

(1) Update on the investigation of the cause(s) of the accident

The interviewing of the concerned parties by the authorities in the investigation of the cause(s) of the explosion and subsequent fire is continuing; however, the cause(s) of the accident have yet to be determined. Shin-Etsu Chemical is also proceeding with its own efforts to analyze the cause(s) of the accident and with its review and reinforcement of all safety measures by its Accident Investigation and Safety Measure Committee set up within the Accident Countermeasures Headquarters.

(2) Update of the web-site of Shin-Etsu Chemical’s Cellulose & Pharmaceutical Excipients Department

With regard to particular information for Shin-Etsu’s customers and agents, we are posting status reports on the web-site of Shin-Etsu Chemical’s Cellulose & Pharmaceutical Excipients Department. Its contents have been updated today. For these reports and other useful information, please visit this Department’s web-site at: http://www.metolose.jp/e/

(3) The condition of the injured persons

Two of the injured people were discharged from the hospital this week. Among the 17 people who were injured in this accident and transported to the hospital, six persons are currently receiving in-patient hospital care. We pray for everyone’s speedy recovery and continue to do our best so that they can have the best treatment possible.

We will continue to report further details on the situation as soon as more information is ascertained, including information about the cause or causes of the accident.